Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
How It Works 
News - Chart
- Upturn Summary
- Highlights
- Valuation
Upturn AI Summary - About
Capital Southwest Corporation(CSWC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for CSWC
10/02/2026: CSWC (2-star) is currently NOT-A-BUY. Pass it for now.
Capital Southwest Corporation is a business development company specializing in providing customized financing to lower middle-market businesses. The company is characterized by a stable dividend-focused model and a long history of disciplined underwriting, which has historically generated consistent income for shareholders. Its primary growth opportunity lies in the expanding demand for private credit as conventional bank lending remains restrictive. Key risks include sensitivity to interest rate fluctuations and potential credit defaults in a slowing economic environment. CSWC is generally best suited for income-focused investors who monitor the company's dividend payout coverage and overall portfolio asset quality.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | While the company grows its portfolio, its primary focus remains income rather than aggressive capital appreciation. |
| Momentum investor | Mixed fit | Momentum performance depends on favorable interest rate outlooks and broader market trends in private credit. |
| Value investor | Strong fit | The company is often viewed as a value play given its consistent dividend yield and track record of asset management. |
| Dividend investor | Strong fit | CSWC is purpose-built for income-oriented investors seeking regular dividend distributions. |
| Low-risk investor | Mixed fit | While lending is secured, BDC investments carry inherent credit and interest rate risks that may exceed those of fixed-income instruments. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | BDC stock prices can fluctuate based on market sentiment regarding interest rates and credit defaults. |
| Valuation risk | Medium | The net asset value (NAV) of portfolio companies may be subject to mark-to-market adjustments. |
| Competition risk (private credit) | Medium / high | Increased competition for high-quality deals can compress yields and lead to weaker covenant terms. |
| Business quality | Strong | The company has maintained a long-standing reputation for disciplined underwriting and consistent operations. |
| Dividend income | Strong | The primary objective of the company is to distribute income to shareholders. |
| Execution risk | Medium | Success depends on the ability to identify, underwrite, and manage a diverse portfolio of middle-market loans. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 15.32% | Avg. Invested days 54 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/02/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.48B USD | Price to earnings Ratio 12.87 | 1Y Target Price 25.3 |
Price to earnings Ratio 12.87 | 1Y Target Price 25.3 | ||
Volume (30-day avg) 597.2K shares | Beta 0.74 | 52 Weeks Range 17.31 - 25.48 | Updated Date 10/02/2026 |
52 Weeks Range 17.31 - 25.48 | Updated Date 10/02/2026 | ||
Dividends yield (FY) 10.03% | Basic EPS (TTM) 1.81 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Interest Income | Interest earned on first and second lien senior secured loans. | The company acts like a bank, collecting interest from businesses it lends to. |
| Management Fees | Fees earned from the management of the investment portfolio. | The company earns fees for managing its assets, providing a steady revenue stream. |
Valuation
Trailing PE 12.87 | Forward PE 11.44 | Enterprise Value 2.65B | Price to Sales(TTM) 6.26 |
Enterprise Value 2.65B | Price to Sales(TTM) 6.26 | ||
Enterprise Value to Revenue 18.52 | Enterprise Value to EBITDA - | Shares Outstanding 63.73M | Shares Floating 61.77M |
Shares Outstanding 63.73M | Shares Floating 61.77M | ||
Percent Insiders 2.78 | Percent Institutions 29.08 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Capital Southwest Corporation
Exchange NASDAQ | Headquarters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | President, Board Member & CEO Mr. Michael Scott Sarner | ||
Sector Financial Services | Industry Asset Management | Full time employees 36 | Website https://www.capitalsouthwest.com |
Full time employees 36 | Website https://www.capitalsouthwest.com | ||
Capital Southwest Corporation is a business development company. The firm specializes in credit and private equity and venture capital investments in lower middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations. The investment structures are unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20 percent of total check and only makes non-control investments. The firm is industry agnostic, but it prefers to invest in industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production, with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within specialty ch
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.
All company names, trademarks, logos, and brands are the property of their respective owners and are used for identification and informational purposes only. Use of these names, trademarks, and logos does not imply endorsement by their respective owners.